DFA issues 2021 financial results
In 2021, the cooperative reported net income, excluding significant non-recurring items, of $199m compared to $171m for 2020, an increase of $28m or 16.4%, primarily driven by lower general and administrative costs and other expenses.
DFA’s net sales totaled $19.3bn for 2021, compared to $17.9bn in 2020, an increase of $1.5bn or 8.1%. The increase is a result of a full year of operations of the facilities acquired as a result of Dean Foods’ bankruptcy compared to a partial year in 2020, along with a higher US all milk price. The average price paid to DFA members was $18.37 per hundredweight in 2021 compared to $17.79 in 2020.
“Covid-19 variants and ongoing supply chain challenges have made 2021 a difficult year for many, but our family farm-owners and employees have continued to persevere and stay focused on keeping people across the United States and the world nourished with milk and other dairy products,” said Rick Smith, president and chief executive officer at DFA.
“In 2022, we remain committed to progressing on our core strategies of providing value to our family farm-owners by marketing their milk, offering valuable farm services and continuing to grow our commercial businesses in the US and around the globe.”
In 2021, DFA directed the marketing of 65.5bn pounds of milk for both members and others through its consolidated businesses, which represent approximately 29% of the total milk production in the US. Cash distributed to members in 2021 totaled $71m. Of the cash distributed to members in 2021, $47m was in capital retirements and $24m represented the cash portion of the allocated patronage dividends.
In 2021, DFA continued to integrate the plant assets and regional brands acquired out of the Dean bankruptcy into the cooperative. DFA said it also focused on expanding its global customer base and growing global demand for dairy.
Commercial Operations, including DFA Dairy Brands, DFA Ingredient Solutions and DFA Beverage and Dairy Foods, saw continued growth in 2021.
Ingredient Solutions exported products to 60 countries and more than 200 global customers in 2021 despite supply chain disruptions impacting the industry and the world in general; distribution was expanded on Amazon for the Siips brand, a line of shelf-stable, low-fat flavored milks targeted to teens and tweens; Ingredient Solutions partnered on new product developments supporting some of the world’s largest food brands and continued to focus on building presence in the US foodservice industry; and Hispanic cheese brand La Vaquita added butter to its product line with salted and unsalted varieties in compostable wrappers.